Selling FDs to degenerates

So, the idea here is to sell high vol FDs on things that I think are unlikely to hit.

The focus will be on earnings plays where things seem priced in already prior to the report, and trying to sell calls at the peak of pump and dumps. If you see any good opportunities for this strategy, feel free to post your trade here as well.

Do note that this strategy is inherently high risk as you are getting a lot of tail end risk if something totally unexpected happens.

To start this off:
Sold 18 FB 4/29 150P @ 3.62

I think that FB has basically priced in the worst possible scenario already, not to mention the fact that it’s trading at a 13 P/E which is a value stock. I’m expecting FB to disappoint again, but value stocks don’t dump 20%+ on an earnings report.


I didn’t get the best entry on these FB FDs, but after the results it looks like these will be worthless tomorrow.

You finally made a thread you lazy fuck. Good stuff. Keep it up!

Sold 1 AMZN 4/29 2550/3170 strangle @ 18.00

AMZN’s just not the kind of stock that has big moves on earnings.

Sold 50 HOOD 4/29 7.5P @ 0.09
That’s about 50 cents below their book value even after factoring in this quarter’s expected loss.

This is cool to read. Kindly share some screenshots every now and then for those of us who like seeing graphics at 16k resolution with anti-aliasing set to 32x.

Seriously, we need more education about selling options.

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So AMZN is a loser. Im short 100 shares @ 2482 to offset the incoming assignment for a net loss of around 50 / share. AMZN’s a pretty shitty company so I do not want to baghold this. If I were assigned FB shares at 150, those I would’ve kept.

AMZN moving down 14% in a day from earnings is a tail end event, but tail end events do happen, especially in this market. The SPX knifing 150 pts obviously didn’t help the situation either.

Other 2 positions expired worthless.

Sold 20 AAPL 5/6 150P @ 2.04.

Stock is oversold now and it’s unlikely this option pays off.

Sold 100 LYFT 5/6 20P @ 0.37

Betting that most of the move down has already occurred on this one.

Doubled down on this, sold another 50 LYFT 5/6 20P @ .76

Put on some earnings plays all for 5/6:
BKNG: Sold 1 1900P @ 20.2
EBAY: Sold 15 50/58 strangles @ 1.91
ETSY: Sold 12 96/106 strangles @ 11

BKNG seems to have priced in a huge miss based on Expedia, but other travel companies didn’t do so bad, they probably bounce on earnings

EBAY and ETSY’s vol levels just seem too high, I’ll take a chance and just sell some volatility here.

Closed out 50 of the LYFT puts for .23. Probably a waste of money, but my exposure to that is a bit high right now.

BKNG up big as expected on any kind of beat, since they priced in a disaster already, which is why I only sold puts and not calls. This is one of my favorite types of plays, where a stock plunges/shoots up on a correlated stock’s earnings right before they report their own, which also happens to push volatility up. I was going to do the same on UBER but unfortunately they stole that from me by moving up their earnings for no reason.

ETSY looking good, they’re trading around 96 in after hours, and EBAY is around 51. Might close out ETSY/EBAY puts tomorrow to cut any potential losses on that side of the trade.

Sold 9 DASH 63P @ 2.77
8 NET 71P @ 2.26
100 FUBO 3P @ 0.06

Whatever terrible results these companies are going to report are priced in at this point. Will double down on all these positions if they continue to decline throughout the day.

Doubled down everything
9 DASH 63P @ 2.73
8 NET 71P @ 2.49
100 FUBO 3P @ 0.08

Also sold 50 SPCE 6.5P @ 0.14
Their earnings should be a nothing event since they have no earnings.

Market is extremely rough today, a flat day tomorrow would be nice.

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One last minute trade
Sold 40 DISH 24.5P @ .33

Again, just vol awfully high for a stock that’s already so bombed out and is pricing in an earnings fail.

Well, this was an awful week. This morning at 10AM basically every single trade blew up, as everything was down massively and the volatility levels exploded on top of that. I basically sold insurance against a tail end event, and said tail end event occurred. MTM loss at 10AM was roughly -60K
I paper handed most of the positions on the bounce around 10:30 as I was over leveraged and did not want to risk holding everything until EOD, especially with the propensity for the market to knife 1% in the last 5 minutes on Fridays, and with the heightened geopolitical risk weekend coming up before Russia’s victory day (this didn’t happen today, but there was definitely the risk). I basically entered Friday leveraged up 400-500% which I normally do, but I’m quickly realizing that is not appropriate for current market conditions. Going forward I’ll probably reduce the max leverage to 250-350%, and get in the habit of cutting trades frequently and early.

Summary for this week:
Premiums collected: 41,671
Payouts: 29,783
Total notional exposure: 1,409,700
PnL: 11,888 (84 basis points on notional)

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How many trades did you make this week?

For this, 10 different names.
Also played another 10 or 20 names for other strategies.

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Well, it’s a new week.

Starting this off with selling 20 AAPL 150P @ 1.93